Five contractors have been blacklisted by Eastern Cape MEC for Human Settlements, Helen Sauls-August, for poor performance.
An additional 17 have been given temporary restriction notices from doing contract work for the department.
Sauls-August says this is one of the department's efforts to ensure that good quality houses are built and to eliminate the need for rectification.
Meanwhile, better performing companies will be honoured in an award ceremony in East London Tuesday evening.
Sauls-August says the awards and the blacklistings are meant to encourage good service delivery.